In “The Problem of Social Cost,” Ronald Coase introduced a different way of thinking about externalities, private property rights and government intervention. The student will briefly discuss how the Coase Theorem, as it would later become known, provides an alternative to government regulation and provision of services and the importance of private property in his theorem. In his book The Economics of Welfare, Arthur C. Pigou, a British economist, asserted that the existence of externalities, which are benefits conferred or costs imposed on others that are not taken into account by the person taking the action (innocent bystander?), is sufficient justification for government intervention. He advocated subsidies for activities that created positive externalities and, when negative externalities existed, he advocated a tax on such activities to discourage them. (The Concise, n.d.). He asserted that when negative externalities are present, which indicated a divergence between private cost and social cost, the government had a role to tax and/or regulate activities that caused the externality to align the private cost with the social cost (Djerdingen, 2003, p. 2). He advocated that government regulation can enhance efficiency because it can correct imperfections, called “market failures” (McTeer, n.d.). In contrast, Ronald Coase challenged the idea that the government had a role in taking action targeted at the person or persons who “caused” the externality. He believed that government intervention did not necessarily lead to economic efficiency. In fact, it could lead to inefficiency and other/additional externalities. Unlike Pigou’s view of an assigning blame to the person(s) who caused the externality, for Coase, there was reciprocity of harm and that a tort results because, when a conflict arises over resources, all parties can harm each other. In his theorem, Coase states that, assuming no transaction costs, economic efficiency...

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...The CoaseTheorem
Michael M. Reynolds
Grantham University
Abstract
Ronald Coase received the Nobel Prize in 1991 for his discovery and clarification of the significance of ("Coasetheorem," ) transaction costs and property rights for the institutional structure and functioning of the economy. Coase writes ("Coasetheorem," ) two articles in particular: “The Nature of the Firm’ (1973), which introduces the concept of transaction cost to explain the nature and limits of firms and “The Problem of Social Cost ("Ronald coase," )” (1960), Which suggests that well-defined property rights could overcome the problem of externalities.
In “The Problem of Social Cost”, Coase laid a critical foundation of modern law and economics- the so-called Coasetheorem. ("Coasetheorem," ). Formulated in a variety of ways the Coasetheorem might state that: ‘when the parties can bargain successfully, the initial allocation of legal rights does not matter.” According to the Coase ("Coasetheorem," ) Theorem, acquiring rights will be by those who value them most highly, which creates an incentive to discover and implement ("Coasetheorem," ) transactions ("Coase...

...Negative Externalities and the CoaseTheorem
As Adam Smith explained, selfishness leads markets to produce whatever people want. To get rich, you have to sell what the public wants to buy. Voluntary exchange will only take place if both parties perceive that they are better off. Positive externalities result in beneficial outcomes for others, whereas negative externalities impose costs on others. The CoaseTheorem is most easily explained via an example
This paper addresses a classic example of a negative externality (pollution), and describes three possible solutions for the problem: government regulation, taxation and property right – a better solution to overcome the externality as described by economist Ronald Coase.
Imagine being a corn farmer and growing corn. What are the private costs that you face that help you determine production? Things like fuel, seed, fertilizer; these are your private costs. But it turns out that every spring and summer when you lay down the fertilizer some of this flows into the stream nearby and flows into a lake downstream, oftentimes resulting in large fish kills. All those downstream, the fisherman, the recreationist, and the landowners all incur a negative externality.
There are three ways in which we can address these externalities:
1- Government Regulation:
a) First, direct regulation is applied through technology-specific methods. This is where the...

...The CoaseTheorem' as it has become known, was propounded by Ronald Coase of the University of Chicago and deals with a hypothetical world of zero transaction costs. His aim in so doing was "not to describe what life would be like in such a world but to provide a simple setting in which to develop the analysis and, what was even more important, to make clear the fundamental role which transaction costs do, and should, play in the fashioning of the institutions which make up the economic system." A zero transaction cost world does of course have very peculiar properties, such that one of Coase's own conclusions was that, in such a world, the law does not matter. People would always be able to negotiate without cost to acquire, subdivide and combine rights whenever this would increase the value of production and so a legal framework is unnecessary. However, a world of zero transaction costs does not exist and Coase tried to use the argument to suggest the need to introduce positive transaction costs explicitly into economic analysis so that the real world could be better studied by economists. Whether he has been successful in this aim is debatable, however, what is certain is that many lawyers (particularly property lawyers) have applauded his analysis and theorem' as it states that the law should determine the level of transaction costs and react accordingly. Instead of determining a legal outcome...

...﻿SUBMISSION QUESTION 7
EXTERNALITIES AND COASETHEOREM
(a) Explain what is meant by “externalities”?
(b) Consider an industry whose production process emit a gaseous pollutant into the atmosphere. Use the simple supply and demand model to demonstrate that, in the absence of any regulation, this industry’s production will result in allocative inefficiency in the use of society’s resources.
Externalities is cost or benefit from production or consumption of commodity that flow to external parties but not taken into account by market (Bajada, 2012).
The impact of externalities is the distortion in allocation of resources. Externalities will cause individual to pursuit based on their self-interest. Hence, it will cause commodity not produced at the socially optimal level and output become inefficient (Frank, Jennings and Bernanke, 2009).
There are two types of externalities:
(1) Externalities cost
Externalities cost happens if production or consumption of commodities inflict cost to external parties without compensation (Bajada, 2012). When externalities costs occur, producers shift some of their costs onto community making their production costs lower than otherwise, thus the commodity become underprices and over-allocation of resources.
The example of externality cost is industry whose production process emits gaseous pollutant into atmosphere. The pollution will impose higher medical or health costs to the society nearby...

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Pythagorean Theorem
In mathematics, the Pythagorean theorem or Pythagoras' theorem is a relation in Euclidean geometry among the three sides of a right triangle (right-angled triangle). In terms of areas, it states:
In any right triangle, the area of the square whose side is the hypotenuse (the side opposite the right angle) is equal to the sum of the areas of the squares whose sides are the two legs (the two sides that meet at a right angle).
The theorem can be written as an equation relating the lengths of the sides a, b and c, often called the Pythagorean equation:[1]
where c represents the length of the hypotenuse, and a and b represent the lengths of the other two sides.
These two formulations show two fundamental aspects of this theorem: it is both a statement about areas and about lengths. Tobias Dantzig refers to these as areal and metric interpretations.[2][3] Some proofs of the theorem are based on one interpretation, some upon the other. Thus, Pythagoras' theorem stands with one foot in geometry and the other in algebra, a connection made clear originally byDescartes in his work La Géométrie, and extending today into other branches of mathematics.[4]
The Pythagorean theorem has been modified to apply outside its original domain. A number of these generalizations are described below, including...

...bernoulli's theorem
ABSTRACT / SUMMARY
The main purpose of this experiment is to investigate the validity of the Bernoulli equation when applied to the steady flow of water in a tape red duct and to measure the flow rate and both static and total pressure heads in a rigid convergent/divergent tube of known geometry for a range of steady flow rates. The apparatus used is Bernoulli’s Theorem Demonstration Apparatus, F1-15. In this experiment, the pressure difference taken is from h1- h5. The time to collect 3 L water in the tank was determined. Lastly the flow rate, velocity, dynamic head, and total head were calculated using the readings we got from the experiment and from the data given for both convergent and divergent flow. Based on the results taken, it has been analysed that the velocity of convergent flow is increasing, whereas the velocity of divergent flow is the opposite, whereby the velocity decreased, since the water flow from a narrow areato a wider area. Therefore, Bernoulli’s principle is valid for a steady flow in rigid convergent and divergent tube of known geometry for a range of steady flow rates, and the flow rates, static heads and total heads pressure are as well calculated. The experiment was completed and successfully conducted.
INTRODUCTION
In fluid dynamics, Bernoulli’s principle is best explained in the application that involves in viscid flow, whereby the speed of the moving fluid is increased...

...In mathematics, the Pythagorean theorem — or Pythagoras' theorem — is a relation in Euclidean geometry among the three sides of a right triangle (right-angled triangle). In terms of areas, it states:
In any right-angled triangle, the area of the square whose side is the hypotenuse (the side opposite the right angle) is equal to the sum of the areas of the squares whose sides are the two legs (the two sides that meet at a right angle).
The theorem can be written as an equation relating the lengths of the sides a, b and c, often called the Pythagorean equation:[1]
where c represents the length of the hypotenuse, and a and b represent the lengths of the other two sides.
The Pythagorean theorem is named after the Greek mathematician Pythagoras (ca. 570 BC—ca. 495 BC), who by tradition is credited with its discovery and proof,[2][3] although it is often argued that knowledge of the theorem predates him. There is evidence that Babylonian mathematicians understood the formula, although there is little surviving evidence that they used it in a mathematical framework.[4][5]
The theorem has numerous proofs, possibly the most of any mathematical theorem. These are very diverse, including both geometric proofs and algebraic proofs, with some dating back thousands of years. The theorem can be generalized in various ways, including higher-dimensional spaces, to spaces that...

...BINOMIAL THEOREM :
AKSHAY MISHRA
XI A , K V 2 , GWALIOR
In elementary algebra, the binomial theorem describes the algebraic expansion of powers of a binomial. According to the theorem, it is possible to expand the power (x + y)n into a sum involving terms of the form axbyc, where the coefficient of each term is a positive integer, and the sum of the exponents of x and y in each term is n. For example: The coefficients appearing in the binomial expansion are known as binomial coefficients. They are the same as the entries of Pascal's triangle, and can be determined by a simple formula involving factorials. These numbers also arise in combinatorics, where the coefficient of xn−kyk is equal to the number of different combinations of k elements that can be chosen from an n-element set.
HISTORY :
HISTORY This formula and the triangular arrangement of the binomial coefficients are often attributed to Blaise Pascal, who described them in the 17th century, but they were known to many mathematicians who preceded him. The 4th century B.C. Greek mathematician Euclid mentioned the special case of the binomial theorem for exponent 2 as did the 3rd century B.C. Indian mathematician Pingala to higher orders. A more general binomial theorem and the so-called "Pascal's triangle" were known in the 10th-century A.D. to Indian mathematician Halayudha and Persian mathematician Al-Karaji, and in the 13th century...